Apples (Money) are not the same as Oranges (Currency). This distinction is significant for understanding our monetary system. Today, we do not have a real monetary system. We do not have any real MONEY within our current Digital Currency Markets. The entire WORLD is now functioning under the ‘illusion’ that our Digital money system is real. Why do so many pundits lack this understanding about money? One answer that I think is valid is our use and misuse of WORDS. We call our ‘dollar’ money. In reality, however, our ‘dollar should be called a CURRENCY. Currencies are created AFTER MONEY has emerged from the marketplace. ALL historical money has emerged from a marketplace where BARTER was the foundation. Barter is what starts a monetary system. Who understands?
An Apple is different from an Orange. Words make a difference when we communicate reality!
Within a Barter marketplace we encounter the problem of VALUE. This concept of our Consciousness is what STARTS all exchanges between people. I have produced (let’s say) eggs within a marketplace and you have produced (let’s say) bread. The problem of VALUE immediately emerges within our Consciousness as we desire to make an exchange or trade. What is the VALUE of my eggs (let’s say 1 dozen) and your bread (let’s say 1 loaf). Is this a one for one exchange or not? If we conclude that this exchange is one for one, than we have set a benchmark for others within our marketplace. One dozen eggs = one loaf of bread. As we continue under a Barter economy, however, we encounter more difficult exchanges of VALUE. This is when we start thinking (consciously) about a proxy for VALUE. What could serve as a proxy for VALUE?
A Barter economy reveals the nature of VALUE in exchange. VALUE is the core concept of Capitalism!
A proxy for VALUE is some thing (item) from material reality (nature) that people in the marketplace VIEW as having ‘value’. What could encompass ‘value’? In reality, ‘value’ is a non-material concept of our Consciousness (no thing and no where). Value is immaterial and non-physical. So what can we INVENT that would encompass or contain our internal idea called ‘value’? Let’s look at history to discover this answer. History shows that ‘value’ was viewed as INTRINSIC within certain (select) items from nature. After many trial and error experiences with perishable items of ‘value’ the marketplace CHOSE a unique commodity that was dung up from the ground. The choice from our marketplace (history) were RARE items from the ground. Silver and gold emerged as the best items for containing ‘value’ over time. People chose these items (things) and THEN they became a proxy for ‘value’.
The people in our marketplaces chose silver/gold as their best PROXY of Value. MONEY emerged from this decision! Money emerges to solve the problem of VALUE within a marketplace!
After the marketplace chose Silver (and Gold) as the best items for the exchange of ‘value’…than these items evolved into MONEY. Money emerged from the marketplace (a Barter economy) because people viewed these items as containing INTRINSIC ‘value’. Value was impossible to objectify as it is unobservable and immaterial…but with the invention of a proxy…MONEY emerged (as this substitute for ‘value’). AFTER the invention of MONEY, another concept emerged from our Consciousness called currency. Currency emerged AFTER money and became a ‘tool’ to increase the velocity of monetary transactions within a marketplace. To grow an economy it helps to have BOTH money and currency. Currencies can increase transactions within a marketplace and this result is important for growing an economy and creating WEALTH and PROSPERITY.
Governments (kings, lords, politicians) create CURRENCIES to increase the velocity of transactions within a marketplace. These currencies, however, emerge AFTER the people have chosen their proxy for ‘value’ (MONEY)!
Let’s briefly review again. Words do matter…Apples are not Oranges. Money (in reality) is a material object, thing, item, or commodity from NATURE. After money has been invented politicians, kings, lords, and governments can use the people’s selection of money to increase their wealth and prosperity for their political Kingdom. If people need money for survival and work, then governments or power centers can USE this factor to grow and control their Kingdom’s wealth and to produce their version of prosperity. The various Kingdom’s of our past (for example the Roman, British, and American Kingdoms) have used the ‘tool’ called MONEY for their control and ‘tool’ to manipulate the people and the markets. Today, we have a Centralized system for control and manipulation of the markets. Our Central Banks are this centralized operation for control and manipulation.
Central Banks now RULE over currencies (which most confuse as our ‘money’). The Central Bank of all Central Banks is the Bank for International Settlements in Basel, Switzerland! This is the CENTER of monetary POWER on planet Earth!
The dangers of a Central control system over money and currency is what select POWER centers desire. Today, Central Banks control our Global Currency operations (I can not call this operation a real SYSTEM, however). Today, we have NO real material MONEY within this global Centralized operation. What we have today are DIGITAL units (called currencies) which the masses of people assume are MONEY. This word game of calling our Digital currency units MONEY confuses the MIND and the CONSCIOUSNESS of thinking people in the marketplace. Most do not discern the DIFFERENCE between money and currency. It’s like calling an Apple by the name Orange. Who can understand what a person is communicating? Words do matter when communicating reality. Apples are not oranges…neither is Money the same as a Currency.
Digital currencies now rule over the world’s commerce. We now live with an electronic (speed of light) operation for trading, speculating, investing, saving, and controlling, and manipulating our global markets!
What we now need in the marketplace are people who desire to UNDERSTAND the real nature of monetary reality. Todays, monetary system is really a non-system. We probably should call it an OPERATION (within the secret rooms of our Central Banks). Today, currencies are created OUT OF NOTHING (the human mind) and then these immaterial/metaphysical units (called dollars, pounds, yen, yuan, rubles, krona, etc.) are TYPED into reality (and appear as virtual images with our computer screens). This OPERATION is not a lasting operation. This operation is not a real SYSTEM. The entire operation is mostly an ILLUSION of our MINDS. Who understands? Who is aware of what is happening today within our controlled and manipulated markets? My sense is that the number of pundits who discern what is happening is very few. I do sense, however, that a growing awareness is emerging within the HARD ASSET communities. Enjoy and pass this missive on to others for consideration! I am: http://kingdomecon.wordpress.com
The history of ‘money’ shows clearly that people choose some item from Nature for their money (wampum, nails, cowry shells, silver, gold, etc.). Prior to money we had Barter. Within a Barter community (or marketplace) people chose some thing from Nature as a substitute (proxy) for Value. Once this money commodity was chosen (to denominate Value) by the marketplace, than politicians (governments) can increase the velocity of this money by creating a Currency. To understand Money we need to understand its off-shoot…Currency. Let’s take an example from our American history to understand the difference between Money and Currency. This distinction is very, very, important to understand!
Silver comes from Nature and has been chosen by Americans (1792-1968) as MONEY! Today, our Fed calls this commodity an ASSET (but not ‘money’)! Why?
What did our American founding Fathers choose for Money in 1792 during our first Congress (represented in the Coinage Act of 1792)? After Thomas Jefferson and others decided that Americans needed their own monetary system (separate from Britain’s), they looked to the marketplace for evidence of what the people had CHOSEN for their money. Their conclusion was that the most desired item within the 13 original States was Silver (represented by the Spanish Silver Coin called the Piece of Eight). This Spanish Milled Coin (called various names) contained pure silver within the coin. The marketplace viewed Silver as the best commodity (from Nature) to represent Value. This is real history! Value can not be represented directly as this concept is subjective and internal to each person within the marketplace. Value, however, is the concept that we all want to ‘measure’ with our Money. Think about Value the next time you purchase an item at your shopping mall.
We measure VALUE via a Currency Unit. This coupon, however, originated from its ‘tie’ to real MONEY from Nature! Currencies can increase the number of transactions within a marketplace (if people have faith and confidence in the unit)!
When a Money item is chosen (by the people) to represent Value, however, than this Money item serves the purposes of denominating Value for all goods being exchanged within a marketplace. Money is the ‘name’, ‘word’, and ‘concept’ that emerges from our activity within a marketplace where Barter has been used (previously) for exchanging goods. Barter is inefficient and impossible to administer as the exchange process (number of transactions) grows within a marketplace. To ‘solve’ the issue of ‘value in exchange’ someone must INVENT the concept of Money and than exchange can grow more rapidly and efficiently. Now let’s expand our monetary system by introducing the concept of CURRENCY. A currency (really a coupon of some type) can increase the velocity of transactions within any marketplace. The key to this increase in velocity is for people to have FAITH in the validity of the Currency (coupon). Faith and Confidence is what makes Money Coupons WORK.
Prior to MONEY we had BARTER. Barter is the foundation for VALUE and exchange of goods/products. Barter, however, is rather slow and inefficient as an economy grows. This means we need to INVENT money!
For example: If I choose a paper coupon, note, or script as Representative of a unit of the Money item (say Silver), then I can expand the number of transactions within a marketplace exponentially. A paper coupon can be Printed from paper products and engraved with images that promote Confidence (say an image of George Washington…who we all view as honest and trustworthy). We can then choose a ‘name’ for the Currency Unit (such as dollar) and define this ‘name’ in terms of the above Money item (Silver). If I define a Currency Unit (say dollar) as 371.25 grains of Silver, we now have logic which helps us expand the transactions within a marketplace. I can now issue coupons, notes, script (called dollars) with the words printed thereon “the bearer of this note can exchange this coupon (one dollar) for precise units of the Money item (Silver)”.
Velocity of Money (really the Currency) allows more transactions to occur. This is one of our problems today as the Velocity of our Currency has collapsed.
Notice this subtle distinction between the word MONEY and the word CURRENCY. Money, historically, has always been some item from Nature which was chosen by the people within a marketplace. Currency (this word) then emerges from this Money item as political authorities create units of Currency for the purpose of increasing ‘transactions’ within the marketplace. Before there was the currency unit called the DOLLAR, there was the money item called SILVER. Silver was MONEY (when our Nation started back in the late 1700′s) and then our Dollar emerged later as our political legal tender currency unit. Notice this important difference as you think about the word MONEY and the word CURRENCY.
Politicians create Paper Currencies (not real Money). These units work ONLY as long as the public has Confidence and Faith in the issuing Authority! Many Americans and Global Citizens are losing faith and confidence in these units today!
This distinction is very important to understand. Money, historically, is CHOSEN by the marketplace (the common people) and then a Currency unit emerges (like our Dollar) to facilitate trade and the measurement of VALUE. The core underlying concept before we have Money or Currency is the concept of VALUE. This concept is subjective and can not be directly observed or determined (‘value’ is derived from our consciousness). This means that we need to INVENT some item from Nature to serve as a Proxy or Substitute for the underlying VALUE of each good or product being exchanged within a marketplace. This item becomes MONEY. These word distinctions are very important to UNDERSTAND! Why? Money is Money and Currency is Currency (not the same in historical meaning)! Below and underlying all is the concept of Value!
Today’s Currencies are DIGITAL. This means that banksters can create these units by ‘typing’ numbers into the computer screen. Quantitative Easing (QE) is an example of currencies created by our Fed by ‘typing’ numbers from their consciousness (into the computer screen)!
Today, our political Authorities have abandoned MONEY from our trading/market system. All we have today are CURRENCIES. None of these currencies are tied, backed, or defined in terms of real MONEY (chosen by the people). The last vestige of Money for Americans ended in 1934 with the calling in of all our GOLD (after the Great Depression of 1929 and after). When all real MONEY was confiscated from the American people, then FDR and his financial pundits, created a paper coupon called the Federal Reserve Note as our Currency Unit. This paper coupon was created by a ‘printing press’ in Washington D.C. called the Bureau of Engraving and Printing (http://moneyfactory.gov/). Later the Fed was allowed to initiate all the printing of these currency coupons. Americans have forgotten the origin of our MONEY and the difference between the concepts of MONEY and CURRENCY. We need to rethink this important history!
This single policymaker has created (I call it counterfeited) more digital currency units than any other banking official in all history. Trillions of these digital units have emerged from his consciousness (and then typed into the computer screen)! Does this create real Wealth for our economy?
Our politicians have further debased our Money with the closing of the gold window in 1971. This action, by President Nixon, created the fiat currencies which we now use for our legal tender. Then in the 1980′s and 1990′s our Politicians and our Central banksters (the Fed), further debased our CURRENCY (the dollar) by creating the DIGITAL DOLLAR. This currency unit is not even made of PAPER. So today, our currency coupons are DIGITAL units that are ‘typed’ into the computer screen by our Banksters (without any Authority from our elected Politicians). Today, we have a Fed which can COUNTERFEIT coupons (imaginary digital units) and call this process Quantitative Easing (QE). What a play on words. Banksters and Politicians can use a ‘play on words’ to disguise their official COUNTERFEITING. Who is AWARE! All this has emerged since the days of FDR (and after with) Nixon. WHO is aware of this history? Who cares? Why should you care? That is my missive for today! Think about this history as our current imaginary non-system collapses in the near future! I am: http://kingdomecon.wordpress.com
The vast majority of pundits seem to think that hyper-inflation is emerging down the road. I say nonsense! What is emerging now is Deflation for 2014 and beyond. Our current bubble economy has not created any hyper-inflation and all the QE has not created any inflation or hyper-inflation (with minor exceptions in key commodities such as oil and oil derivatives). So what is happening and why? What the vast majority of pundits miss IMO is the nature of our monetary system today. Money units are NOT getting to the Consumer (which represents some 70% of our economy). The Consumer is living from pay check to pay check with little or NO increase in purchasing power. Wages are going down for some 91 million unemployed and under employed. This vast number of Consumers are not enjoying an advance in their purchasing power. The key to more inflation and hyper-inflation is more money units for the average Consumer. This is NOT happening! This is unlikely to happen!
Gold is a leading indicator of the DEFLATION that is coming! After the coming crash in our stock/bond markets, a reversal in the price of gold and silver is very likely. These metals are the FOUNDATION of our Western monetary system!
The Fed has been increasing digital dollar units in the trillions, yet there is NO real inflation in the general economy. Yes, I can pick out select items which have experienced ‘inflating’ (which I call select price increases). This is not going to lead to any hyper-inflation down the road. The probability is that once the stock market crashes (most likely in the next few months) our imaginary money units (digital dollars) will start to collapse ‘values’ of most ASSETS (real estate, autos, durables, etc.). As ‘values’ start to collapse (disappear into money heaven), this process will overwhelm the markets and cause DEFLATION. Value destruction happens when confidence in the general economy wanes and disappears. Bubble economies (as now) can not last when confidence wanes and negative emotions emerge. This trend is starting NOW and is likely to increase substantially in 2014. Watch!
The coming CYCLE of deflation starts slowly and gathers momentum over time. Watch the above cycle unfold starting in 2014 and after!
What has emerged in the past 20 years is a robotic economy for most goods. Goods can now be produced by robots and machines at levels never before possible. Computer technology and robotic technology has created markets where supply can overwhelm demand (in most goods). Exceptions would be food and many consumable items from the agricultural sectors. These goods are subject to the vagaries of the weather and also the continuing DEMAND from consumers (for survival). We could witness sharp increases in prices of select food items if farmers are unable to produce sufficient supplies. This factor, however, will not (by itself) create hyper-inflation. A major economic Depression is coming and ‘value’ destruction (deflation) is more likely than any type of real hyper-inflation (especially in our Western economies).
When the Bubble pops or gets pricked then ‘value’ destruction emerges with a vengeance! This is coming in 2014 IMO!
All the vast dollar surpluses now held by China, Japan, and Germany could distort select markets if these funds are deployed into select commodities (such as gold, silver, and select base metals). This deployment, however, does not mean hyper-inflation for the general markets. To create any meaningful hyper-inflation the Fed and the other Central Banks would need to start PRINTING currency units (paper notes and similar for the general consumers). Digital currencies tend to remain within the Computer Screens of most recipients and do not get to the Consumer (in sufficient supply to create hyper-inflation). Theoretically, it is possible to have hyper-inflation with digital currencies (such as our dollar) if Congress were to vote a general distribution to the Consumer (say a huge tax give-away). I do not expect this event, however, as our Congress is mostly bankrupt.
After the coming stock/bond market crashes, then we will witness a huge BUBBLE in the price of gold/silver! We could witness the beginning of this trend soon!
Most of our political leaders are now aware that our DEBT is unpayable and hyper-inflation will not cure our DEBT problem. Our current money units are created as ‘debt’ units and there is NO solution to our DEBT problem via hyper-inflation. The ONLY solution to DEBT is liquidating this ‘imaginary’ DEBT. The market will do this for us via VALUE DESTRUCTION over time. What we need to understand is that ‘money’ is a proxy for VALUE. Value is a subjective concept within our Consciousness. Value disappears when confidence disappears and when Consumers flee the credit markets. This has not happened since the GREAT DEPRESSION era of 1929-1937. I now sense that this emotion (a lack of confidence) is emerging with a vengeance. This means that ‘value’ destruction is coming and DEFLATION is coming in 2014 and after. Watch the markets for signs of WHEN!
A Debt collapse in bonds, real estate, derivatives, and other paper (digital) assets means that dollars disappear into ‘money heaven’! Most of our currencies today are VIRTUAL (imaginary) and we witness these units within our Computer Screens as no-thing units!
Food, gold, silver, and items which tend to retain ‘value’ in a new market where confidence is declining should be viable alternatives for 2014 and later. Now is the time to get prepared for ‘heavy’ WAVES (my old Navy saying)…as a financial storm is brewing over the horizon. Those who prepare now should weather this storm. Many, however, may not survive the coming difficult YEARS. Do your own thinking on these issues! My view is a result of my thinking! Enjoy! I am: http://kingdomecon.wordpress.com
As the spot price of gold and silver continues its downward trend (now some 27+ months) the likelihood for a huge purchase at these low prices becomes likely. This huge purchase could be initiated by a major Nation (like China, India, or Russia) or it could be initiated by a single investor or a precious metals fund. After all, we all know that gold/silver bars and coins to not disappear or lose their physical nature…with a downward price trend. The ‘price’ of gold and silver could go to ZERO and yet the physical bars and coins would remain. This means that the ‘value’ of gold and silver metals can be much different from the current spot price. In fact, if the spot price were to continue downward for another 12 months or so, a major investor (person, company, or nation) could choose to accumulate a huge supply for the eventual day of reconstruction of our monetary system. This suggests that the declining spot price (manipulated as it is) is not all bad.
This chart reveals that electronic price nature of our current Digital currencies. Prices change in milliseconds (in real-time trading)! These ‘prices’ are subjective and artificial. We can also call these prices ‘imaginary’! A gold and silver coin could reflect a ‘price’ of ZERO…yet the metal coin would continue to have ‘value’!
What we now need to understand is that the price of silver or gold does not reflect the underlying ‘value’ of the metals. Price is an artificial and subjective construct which emerges from our on-line trading strategies. Prices are derived from human consciousness and may not reflect the ‘value’ of these commodities in the longer run. As market situations change the subjective ‘value’ of gold and silver will change. When our digital economy changes direction and trading strategies change, we will likely witness the digital price of gold and silver reach historical levels (much higher than current prices). Digital money is what creates the ‘prices’ of these metals today. These digital prices are really imaginary and subjective at the core. Gold and Silver (bars and coins) are not imaginary nor are they subjective. This means that the real underlying ‘value’ of these metals will eventually reach a level reflective of their long-term demand. History demonstrates that gold and silver can not be created ‘out of nothing’!
This image reveals the transition of our paper fiat money units into numerical digits (now within our computer screens). Today, some 96% of all monetary transactions are completed using digital money units (4% are paper and metal coins)!
The vast majority of market traders and pundits (as of today) do not seem to understand the real ‘nature’ of our digital money units. If and when they become fully aware of the ‘imaginary’ nature of these virtual units, I suspect that the demand for something real and tangible will emerge. Human nature will reject an imaginary unit (our current digital dollar) when they realize that these units have zero staying power when a major deflationary environment develops (a crash of the global stock/bond markets could set-off this deflationary environment). When our current bubble environment (our stock/bond markets) have run their course, I suspect that emotions will change dramatically and when this happens gold and silver will emerge as the choice of the masses. This new trend could develop within the next few months (or sooner).
Most pundits and traders recognize the virtual nature of the Bitcoin. Are they AWARE, however, that all the global currencies are now mostly VIRTUAL units (digits within the computer screen)?
Now may be a great time to dollar/cost average into silver/gold coins, bars, and select mining companies. The current market situation (of real-time manipulation) will change when the physical supply of gold and silver is controlled by STRONG hands. I sense that this trend is now developing globally. Those who have patience and hold their current positions (in the gold/silver sector) should experience a major up trend soon. This means that they could recoup all or most of their recent losses. That is my sense/opinion of our current situation. HOLD and then Dollar/Cost average into some new positions (if the current downward price trend continues). I intend to do the same. This blog, however, is not an investment advice blog. Keep in mind that the above words are merely my view and opinion of our current market situation (as of today). Enjoy and Watch the Markets as we could witness some ‘heavy’ WAVES (my old Navy saying) in the next few months! I am: http://kingdomecon.wordpress.com
Discerning the times within a Business Cycle is not a perfect science. Those who have been following the markets, however, tend to agree that the Cycle for stocks could change soon! A change in direction is likely within days, weeks, or months (at the most). The Dow has increased some 22.8% since the beginning of the year. The S & P 500 index has increased some 28% and the Russell 2000 has increased some 34%. Do these increases suggest that a Bubble is developing? The market pundits on CNBC and the Kudlow Show seem to think that this market is poised for much more in the coming months. Who understands what is happening in today’s markets?
This index suggests that stocks are entering the Bubble Phase. The stocks in this index have increased some 34% in 2013 and over 40% in the past year. Can the Bubble continue much longer?
Business Cycles are representative of change over time. The emotions within the investment and finance community desires the positive over the negative. This means that the UP cycle can continue until a change in Confidence develops. As of this writing, the Confidence factor is still quite strong. Investor emotions desire to push and pump the numbers UP for the time being. We could witness the biggest Bubble in all of history before this Cycle is complete. When the Cycle ends, however, we could also witness the Biggest Decline in all of history. Extremes seem to be in vogue as of now.
The Biotech index is up some 47% in 2013. Is this a Bubble? Who can discern when this cycle ends?
The one asset which has NOT experienced a Bubble in 2013 is Gold and also Silver. Historically, these metals tend to increase in price during Bubble phases. This reality, however, has not developed in 2013. Both Gold and Silver are DOWN substantially. Gold is DOWN some 27% so far in 2013 and Silver is DOWN some 42% in 2013. Does this make any sense based on history or prior business cycles? Why would gold and silver be down during this Bubble Phase within the stock indices? Could it be that these prices are manipulated down for a reason? Who would desire that this occur?
This chart provides an image of what has happened in the silver/gold markets in 2013. Down, Down, Down!
In conclusion, we can now discern that our Stock Index Markets are entering their BUBBLE phase. The trend in motion will end at some point. My personal sense is that the END could develop later in 2013 or early in 2014. I realize that no one can predict a major change in a cycle that has been pumped up with QE money for so long. Bernanke and his Fed have desired that investors seek risk assets in 2013. Will the Fed attempt to push up this BUBBLE to historic levels (say 20,000 on the Dow)?
Ben and his QE program has certainly influenced all the markets…especially the Stock Markets!
The Dow is now at 16,000 and heading for 17,000. Could our central Authorities (our Fed) keep this trend going for another year? Personally, I doubt it! My sense is that some Black Swan event will occur within the next few weeks or months (at the most). This means that the biggest CRASH in history could start quite soon! Watch the markets and witness this coming event! Enjoy! I am: http://kingdomecon.wordpress.com
Today’s Wall Street Journal stated that Regulators are investigating possible manipulation in the precious metals markets. The authorities doing the investigation are the Financial Conduct Authority (U.K.) and BaFin (Germany). To date, however, no evidence is available that would point to any abuse. The spot price of silver is set after a conference call at midday with the Bank of Nova Scotia. The two other banks involved are the Deutsche Bank and HSBC Holdings. There was no mention of which policymakers set the spot price nor was their information on how the spot price is determined. It would appear, however, that one measure of determining the spot price is via the computer prices within the realtime futures markets (as reflected on the electronic exchanges).
Bank of Nova Scotia is one of three banks involved in setting the silver spot price daily in real-time!
The article stated that HSBC and Deutsche Bank declined to talk about their procedures and processes (with respect to silver) and Societe Generale and Barclay’s also did not respond with respect to the gold fixing process. There are five banks which set the gold fixing and three banks involved in the silver fixing. A conference call is the procedure for arriving at the fixing price, however, the details of how this price is determined and what markets are used for determining the prices are still secret. According to the article, prices have been determined in London for gold since 1919 and for silver since 1897. London has been the center for this price-fixing for centuries (according to the WSJ article).
Deutsche Bank, AG is involved with setting spot price for gold and silver daily in real-time!
HSBC Holdings PLC is the third bank involved in setting the spot price for silver daily in real-time!
The article state that the CFTC, also called the Commodity Futures Trading Commission, hasn’t taken any action on the manipulation issues as yet, however, it has raised the issues with foreign regulators. When the CFTC was created in 1974 with the enactment of the Commodity Futures Trading Commission Act, most futures trading took place in the agricultural sector. Over the years, the futures industry has become increasingly varied and complex. Today, most electronic trading in the Futures Markets within the U.S.A. comes under the authority of the CFTC. Manipulation of markets is being prosecuted as evidence becomes pervasive. Example: March 14, 2012—The CFTC charges Joseph F. Welsh III in federal court with attempted manipulation of the prices of palladium and platinum futures contracts, including the settlement prices. According to the complaint, while working as a broker at MF Global Inc., Welsh employed a manipulative scheme commonly known as “banging the close.” Welsh is also charged with aiding and abetting Christopher L. Pia, who had settled similar charges with the CFTC on July 25, 2011. (CFTC Press Release 6210-12, March 14, 2012)
CFTC in Chicago. Visit website at: http://www.cftc.gov/index.htm
The manipulation of commodity prices in the precious metals markets has become extremely pervasive and obvious in recent months. The price suppression schemes are being reported daily by organizations and media such as: http://www.gata.org/ and http://www.kingworldnews.com/kingworldnews/King_World_News.html. Can the authorities discover who are behind all these manipulation schemes? This is the bigger question. To date, all the efforts to discover the perpetrators has not revealed those doing the manipulation. Are the Central Banks behind all this manipulation? Many think they are. Hopefully, the truth will emerge in the next few months. Enjoy this day! I am: http://kingdomecon.wordpress.com
The vast majority of Americans seem to think that our ‘dollar’ is a physical thing from nature. If I ask a typical American at the coffee bar the question, what is a ‘dollar’, I might get the answer that it is a paper note or a metal coin (as we all have some of these paper notes and/or coins in our purse or billfold). This answer, however, does not get to the core of the question. In reality, we now transact business with mostly a ‘digital dollar’. This ‘dollar’ is non-physical and can only be seen within our computer screen. This ‘dollar’ (now a virtual unit) is produced by typing a number (digit) into the computer screen and then transferring this unit via electronic means to another person or entity. The unit comes into reality by typing (into the computer screen) or by the spoken word (into the computer screen). Is this ‘dollar’ official legal tender? Is this ‘dollar’ allowed by our Constitution? I don’t think so!
Today’s currency (our dollar) has not been tested in our court of law (as being official legal tender) and most of our representatives in our Congress seem totally unaware the our current digital ‘dollar’ is unconstitutional. Our Constitution has given the power of money creation to our Congress. Congress has delegated this power to a private corporation called the Federal Reserve System. Today, our Federal Reserve System is creating our currency unit (the dollar) ‘out of nothing’ and our dollar appears within the computer screen after it is typed or spoken into the computer screen. As Americans we all use mostly the digital dollar today for all our money transactions. The historical paper note and the metal coin which was called our ‘dollar’ is now only some 4% of all money transactions. Who is aware of this?
To summarize, our ‘dollar’ today is a no-thing unit and it is created from the Consciousness of a group of banksters at the Federal Reserve Bank (we can call it our fourth branch of our unconstitutional government). Money is not supposed to be created ‘out of nothing’ and our ‘dollar’ is not suppose to be ‘imaginary’, ‘virtual’, or ‘digital’ (without our Congress passing legislation which allows this unit). To date, we are creating and using a money unit that should be illegal tender and it should be unconstitutional. That is my missive for today. Think about this and ask your Congressman the question: What is our Dollar today? Enjoy! I am: http://kingdomecon.wordpress.com